Why Becoming a B Corp? A Discussion and Some Reflections

In the late 1980s, the prevailing corporate model usually depicted companies as economic entities pursuing shareholders’ profit maximisation interests without a thought for the consequences of this behaviour on the local community and environment. However, over the last decades, corporate scandals challenged that corporate model’s validity and paved the way for a sustainable corporate model. The latter emphasises a triple bottom line approach that incorporates social, economic, and environmental objectives. By implementing a sustainable corporate model, companies achieve both economic and social goals in a balanced approach. This research investigates the B Corporation (B Corp) certification system, which helps companies implement a sustainable corporate model voluntarily. B Corp certification is a badge signal that companies’ business model adheres to ethical standards and meets socially conscious stakeholders’ expectations. Our research aims to provide a deep contextual understanding of the determinants and implications of the B Corp certification’s adoption. We adopt a semantic approach to review and systematise management and accounting literature on Certified B Corporations (B Corps) through institutional theory’s lenses, which help us explain why firms decide voluntarily to become B Corps.